These days, you’d be hard pressed to find a major retailer that doesn’t offer an online platform or store to purchase items from, and for good reason: now more than ever consumers are heading online to make purchases. In fact, current statistics show that 89% of consumers prefer to shop online – not surprisingly – due to the convenience, value and variety of products available at their fingertips (literally). With the steady increase in online consumer spending however comes an equally steady rise in consumer returns, leaving retailers with a lot of returned and excess merchandise to sort out behind the scenes.
- On average 12% to 15% of online purchases are returned versus 6 to 8% for brick and mortar
- Consumer electronics and shoes purchased online come with the highest return rate of up to 20%
- Relaxed return policies including free shipping on returns drive up the amount of items returned
- Retailers spend an estimated 5% to 6% percent of revenue to manage all aspects of an online customer return
If you’re experiencing higher volumes of returned merchandise due to an increase in your online channel and are in need of a liquidation solution for that merchandise, a B2B marketplace platform can help maximize the merchandise value while lowering operational churn time. Rather than relying on traditional liquidation methods, including negotiating directly with one or two buyers, an online marketplace that connects your inventory directly to thousands of business buyers can increase recovery by 30-50% and sometimes much more.
To learn more about the benefits of leveraging an online B2B liquidation marketplace platform, please contact us. For a look at some the top retailers’ online marketplaces, powered by B-Stock, please visit the B-Stock Sourcing Network.
Relaxed return policies drive customer loyalty but can wreak havoc on reverse logistics. Given the amount of merchandise returned each year is steadily growing (in 2014 it was up 6%), reducing internal costs in the handling of this returned merchandise is critical in today’s competitive retailing environment, especially when it comes to merchandise slated for liquidation. By getting smart about the secondary market and looking beyond traditional liquidation methods – including negotiating with and selling manually to one or two liquidators – you can create a more sophisticated, scalable solution that optimizes your monetization of customer returns.
So the question becomes: how can an organization update its reverse logistics program and what does a successful, sophisticated and scalable solution for customer returns and other excess inventory look like?
We recently put together a client case study covering this particular topic: the client – one of the world’s largest home furnishings and home décor e-tailers – was experiencing higher volumes of customer returns due to explosive growth in sales and needed a liquidation solution that could effectively scale while maintaining good recovery numbers.
To solve this challenge, B-Stock launched a customized B2B marketplace for the client enabling large numbers of approved business buyers to bid directly on the inventory, thus driving prices up. Additionally data-driven auction strategies were applied to extract the buyers’ highest willingness to pay while category-specific marketing programs were implemented, driving thousands of new buyers to the marketplace. The result was a 31% increase in overall recovery for the merchandise – even after a triple digit percentage increase in inventory volume.
To read our full case study, please click here. For more information on how B-Stock can help you create a successful and scalable solution for your customer returns and excess inventory, please contact us.
We are thrilled by our inclusion in the “Supply & Demand Chain Executive 100” for 2015. The recognition highlights top projects between clients and solution providers that have resulted in supply chain excellence. B-Stock was selected based on the successful execution of a B2B liquidation marketplace for a major home décor and furnishings e-retailer.
This accolade from Supply & Demand Chain Executive is extremely gratifying and further affirms the importance of implementing a liquidation program – that maximizes recovery while minimizing overhead – into overall business strategy. Through our technology platform and data-driven services, B-Stock is proud to routinely deliver results for our clients.
To read more about B-Stock’s SDCE 100 recognition, please read our press release. For a look at the Supply & Demand Chain Executive 100 please read the online article or pick up a copy of the magazine’s June issue.
By working hard to change the way organizations approach their customer returns and excess merchandise, B-Stock is revolutionizing the liquidation business. For more information on how B-Stock can help you implement a successful liquidation solution, please contact us.
The entire B-Stock team is honored to have been awarded the 2015 Growth Company of the Year Award by the Harvard Business School Association of Northern California! This incredible accolade was presented to our CEO (and Harvard Business School alum) Howard Rosenberg at the 6th Annual Harvard Business School Entrepreneurship Summit. B-Stock won the award in the ‘Business to Business’ category. The award recognizes companies that have successfully scaled from the startup phase using less than $20mm of outside capital.
Given the number of amazing startups founded by HBS alumni in the Bay Area, we are truly honored by this recognition and proud to be making such an impact in the business community as well as within the reverse supply chain.
By working hard to change the way organizations approach their customer returns and excess merchandise, B-Stock is revolutionizing the liquidation business. For a better look at our global network of B2B liquidation marketplaces please visit the B-Stock Sourcing Network. For more information on how B-Stock can help you implement a successful liquidation solution, please contact us.
The team at B-Stock would like to congratulate our CEO, Howard Rosenberg, on being recognized as an Ernst & Young Entrepreneur Of The Year Award Semifinalist in Northern California. The annual EY awards program recognizes entrepreneurs from around the country who demonstrate excellence, innovation and commitment to their businesses and communities. Inspired by entrepreneurship early on, Howard has spent the majority of his professional life using technology to build innovative businesses that set out to disrupt large, inefficient markets.
This includes the reverse supply chain: since 2008 B-Stock Solutions has enabled hundreds of companies, including four of the five largest U.S. retailers, to improve their recovery on billions of dollars worth of excess and returned inventory. By creating efficiency, transparency, and trust for both our buyers and sellers through applied technology, analytics, and services we are revolutionizing the liquidation business.
As a regional semifinalist, Howard will be eligible for consideration for the EY Entrepreneur Of The Year national program and we wish him luck! To read more about Howard’s EY Entrepreneur of the Year recognition please read our press release. For more information on the EY Entrepreneur of the Year award program, please visit the Ernst & Young site.
For more information on how B-Stock Solutions can help you implement a successful liquidation solution, please contact us.
Most of us are familiar with “Moneyball,” a book-turned-film about a Major League Baseball team’s data-driven approach to assembling a competitive roster of players, which ultimately disrupted the existing model. While not as glamorous as the MLB, the same approach of focusing on key metrics can be applied to maximizing recovery on returned, overstock and excess inventory slated for liquidation. Simply put, the answers to building a formula for success lie in the data.
So, how do you implement and sustain an effective program for customer returns and excess inventory? B-Stock Solutions’ CEO Howard Rosenberg recently contributed an article to Reverse Logistics Magazine on the topic, specifically how to apply data-driven methods to increase recovery via a B2B liquidation marketplace setting, focusing on bidder acquisition and retention, sustained competition, auction lot configuration and customer service quality.
- There is a 300% increase in recovery when the number of bidders grows from under five to more than 15.
- There is a 41% increase in final bid price when a repeat buyer wins the auction.
- When the right bidders participate, there is a 243% increase in final price.
To read more of Howard’s article in Reverse Logistics Magazine, please click here. For more information on how B-Stock Solutions can build a successful B2B liquidation solution for your returned, overstock or excess inventory, please contact us.